On June 10, 2019, Vermont Governor Phil Scott signed into law Senate Bill 131, creating an insurance regulatory sandbox that gives the Department of Financial Regulation the authority to grant limited-duration innovation waivers of statutory and regulatory requirements. The waivers are designed to enable companies to create innovative or more efficient insurance products and services that can be developed, tested and brought to market more quickly. In order to obtain an innovation waiver, a company must demonstrate, inter alia, that such waiver is in the public interest and will not substantially or unreasonably increase any risk to consumers.
The new law, effective July 1, 2019, also authorizes domestic surplus lines insurers. Accordingly, Vermont domestic surplus lines insurers may obtain a certification from the Commissioner as a surplus lines insurer, enabling such insurers to place policies not reasonably available in the admitted market.
For any questions regarding Senate Bill 131, or for innovation waiver and surplus inquiries, please contact Westmont Associates, Inc.